Commercial Real Estate Banking

Risk Diversification Tips

For added security and ease of financial management, CRE firms should consider utilizing banking solutions that allow for individual accounts to be opened for each income-producing real estate asset and fund. By doing so, each account is insured by the FDIC up to $250,000, providing peace of mind that all resources tied to that asset are protected. This approach is more efficient than consolidating funds into one or a few accounts. Furthermore, having separate accounts for each asset streamlines financial tracking and reporting, ensuring accuracy and saving valuable time.

Selecting Banking Partners & Financial Service Providers

To minimize risk and maximize operational efficiency, it's essential for CRE firms to broaden their horizons and work with a range of banking service providers. Relying on one or just a few financial institutions can leave you vulnerable, as any issues they face could have a direct impact on your business. While consolidating accounts with a select few banks can be helpful, it's also important to explore other options to ensure you have the best coverage possible.

Download the ebook to access additional asset protection & risk diversification tips for banking and payments in commercial real estate.